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02/09/2010 14:30:49

NFU highlights effect of feed price rise



The NFU continues to highlight the effect high wheat prices have had on feed costs and the impact of this on the poultry sector. Over the last month Peter Kendall and Robert Newbery have spoken to various members of trade and national media on the subject.

In 2009 UK production of compound poultry feed was 6.2 million tonnes, of which 3.5 million tonnes for broilers and 1.3 million tonnes for eggs (remaining 1.4 million tonnes turkeys, ducks etc). Based on roughly 60% wheat inclusion this is 3.7 million tonnes of wheat, meaning every £10/tonne price rise costs the poultry industry £37 million/yr.

Rob Newbery, NFU Chief Poultry Adviser said "Poultry farmers are highly sensitive to fluctuations in the price of wheat. The cost of growing a chicken or producing a dozen eggs is approximately 60% down to the cost of feed, which is typically 60-65% wheat. A sustained rise in wheat prices will have a direct impact on the profitability of poultry farmers. The effect of a £10 per tonne rise in wheat price is approximately three pence on a chicken or 1.5p per dozen eggs leaving the farm. This is hugely significant to poultry farmers operating at extremely tight margins, but it should not result in a significant rise in the price of a supermarket chicken or a dozen eggs. It is essential that any cost increase in producing chicken and eggs are passed up the supply chain."




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